International Women’s Day 2024, 50/30/20 rule of money: As we gear up to celebrate International Women’s Day on Friday, March 8, we bring you the 50-20-30 rule in financial planning for women to help them manage their finances better.
International Women’s Day 2024, 50/30/20 rule of money: Financial independence remains crucial for everyone, irrespective of gender, sex, or race. But for women, it becomes even more important. As we gear up to celebrate International Women’s Day on Friday, March 8, we bring you the 50-20-30 rule in financial planning for women to help them manage their finances better. The 50-20-30 rule intends to help individuals manage after-tax income and focus on having funds for emergencies and savings for retirement.
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What is the 50/30/20 rule for saving?
50% for needs
Up to 50 per cent of income should be kept aside for an individual’s needs. The needs may refer to essential expenses, financial obligations, and other responsibilities. For instance, rent, utilities, groceries, insurance, health care, etc.
30% for wants
The next 30 per cent of the income can be used to fulfil one’s wants. For instance, to watch a movie or play in a theatre, pursue a hobby, and go on a vacation.
20% for saving & debt repayment
The remaining 20 per cent of the income should be allocated towards savings, investments, and debt repayment. Savings offer you a cushion for any financial emergency, medical treatments, house or car maintenance, and more.
Notably, anyone who plans to follow the 50/30/20 rule can simplify it by setting up automatic deposits, using automatic payments, and also tracking changes in income.
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International Women’s Day 2024 Theme
The theme for International Women’s Day this year is ‘Invest in Women: Accelerate Progress’ according to the official website of the United Nations.
